Barclays Lowered Rackspace Technology Price Target to $1.00
May 21, 2023
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Barclays has recently lowered Rackspace Technology ($NASDAQ:RXT)’s price target to $1.00, according to Defense World. Rackspace Technology is a cloud computing and managed services provider, with its business focused on developing and managing cloud solutions for customers. The company has a cloud-native platform that offers a wide range of technology solutions, from managed hybrid cloud that supports cloud applications, to infrastructure-as-a-service and platform-as-a-service offerings. It also provides products and services that enable customers to migrate their workloads and applications to the cloud. Rackspace Technology offers its products and services to customers of all sizes, including enterprise customers, small and medium businesses, and other organizations. The company’s extensive portfolio of cloud products and services includes managed public clouds, private clouds, managed virtual private clouds, and dedicated servers.
In addition, it provides managed services such as consulting, architecture, security, monitoring, patching, and performance optimization. Rackspace Technology is publicly traded on the New York Stock Exchange under the ticker symbol RXT. The lowered price target from Barclays may indicate to investors that there could be room for growth in the future for this stock.
Price History
On Tuesday, RACKSPACE TECHNOLOGY stock opened at $1.1 and closed at $1.1, up by 4.6% from last closing price of 1.1. This significant increase was due to Barclays’ decision to lower the company’s price target to $1.00. The decision came as a surprise to many analysts who had expected the company’s price target to remain above its current stock price.
The new target was seen as a sign of lowered expectations for the future performance of Rackspace Technology and its products. Despite this news, the stock closed higher, indicating that investors were still confident in the company’s potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rackspace Technology. More…
| Total Revenues | Net Income | Net Margin |
| 3.11k | -1.38k | -8.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rackspace Technology. More…
| Operations | Investing | Financing |
| 180.3 | -83.7 | -187.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rackspace Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.75k | 4.73k | 0.11 |
Key Ratios Snapshot
Some of the financial key ratios for Rackspace Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.7% | -74.8% | -41.0% |
| FCF Margin | ROE | ROA |
| 3.4% | -243.2% | -16.7% |
Analysis
At GoodWhale, we have conducted a comprehensive analysis of RACKSPACE TECHNOLOGY’s fundamentals. Based on our Risk Rating, RACKSPACE TECHNOLOGY is a high risk investment in terms of financial and business aspects. Upon further inspection, our analysts have identified 2 risk warnings in the income sheet and balance sheet. To view these warnings in full detail, please become a registered user on our platform. More…
Peers
It competes with Ucloud Technology Co Ltd, Oculus VisionTech Inc, and Taiwan Auto-Design Co for market share in the cloud services sector. All four companies have established reputations in their respective fields and offer a wide range of services to their customers.
– Ucloud Technology Co Ltd ($SHSE:688158)
Ucloud Technology Co Ltd is a Chinese company that specializes in cloud computing and other internet services. The company has a market cap of 6.03 billion as of 2022, making it one of the larger companies in the industry. The company has a negative return on equity of -9.55%, indicating that it is not generating enough revenue to cover its costs of capital. Despite the negative ROE, the company still has a large market cap and has been able to increase its market share in the cloud computing space.
– Oculus VisionTech Inc ($OTCPK:OVTZ)
Oculus VisionTech Inc is a technology company that specializes in virtual reality and augmented reality solutions. It has a market capitalization of 10.21 million dollars as of 2022, reflecting its size and financial standing among other companies in its field. Furthermore, its Return on Equity (ROE) of -136.71% indicates that the company is not performing optimally and may be a cause for concern for investors. However, the company does have potential for growth and success and could be a good investment opportunity for those willing to take the risk.
– Taiwan Auto-Design Co ($TPEX:6791)
Taiwan Auto-Design Co is a Taiwanese car design and manufacturing company that specializes in producing custom luxury vehicles for individual customers. The company has a market capitalization of 979.81M as of 2022, signaling the potential of the company as well as the confidence of its investors. Taiwan Auto-Design Co’s Return on Equity (ROE) of 19.36% indicates that the company is well-managed and is able to generate a healthy return on its equity investments. Therefore, Taiwan Auto-Design Co is an attractive investment opportunity for those looking for a safe and reliable return on their investments.
Summary
Despite the reduced target, investors appeared optimistic as the stock climbed upon the release of the news. Analysts suggest that the long-term outlook for the company is strong, and that the lowered target doesn’t reflect the company’s potential. Although near-term prospects are uncertain, Rackspace has a strong portfolio of services which could help them weather any economic challenges. Investors should watch this stock closely as it could be a good opportunity for long-term growth.
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